What to Do About Your FSA Contributions if Your Child Care Is Closed

From LifeHacker:

“The new ruling is an attempt to address some of the limitations of the FSA,” said Craig Keohan, chief revenue officer at HSA provider HealthSavings. “In many ways, the changes highlight the restrictions of the FSA, because it is an employer-sponsored, use-it-or-lose-it fund.”

These changes aren’t automatic

If your employer announces another open enrollment period, it’s a great opportunity to look at your healthcare and dependent care needs and make changes to your coverage that fit your finances. But there’s no guarantee your employer will make the offer.

“FSAs are really owned and designed by the employer,” said Shobin Uralil, co-founder and COO of health savings account provider Lively. “There are a lot of compliance issues an employer needs to pay attention to.” During the pandemic, he explained, employers may not be able to take on that extra work.